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Does A Detached Garage Increase Home Value?

Detached garages have been around for decades. They have a bunch of benefits, and a few drawbacks, when compared to a traditional garage that’s attached to the house. And they’re increasing in popularity as lot sizes get smaller. But does a detached garage increase home value? And if so by how much? In this article we’ll discuss the effect a detached garage has on your property value.

If you’ve got the right size property and need more space, a Detached Garage may be the answer. We build them in a variety of sizes, styles and designs ranging from 1 car to 4 and with a lot more uses than just storage. Detached garages feature home gyms, offices, work shops, lofts and even full apartments. And since a detached garage is it’s own standalone structure you have more options than with a standard garage. In all the years we’ve been building homes we’ve never had a single client regret owning a detached garage. But you need to consider the value a detached garage adds to a home and not just the benefits of owning one.

More and more homeowners each year are opting for a detached garage over one that’s attached to the house. Not only do they offer lots of benefits but also add value to the house. Ahead you’ll find out why and by how much.

2 car detached garage with apartment living space real stone with cedar shake and real wood doors

Huge detached garage with 2nd floor apartment. An apartment that size is sure to increase the resale value of any home.

What Is A Detached Garage?

A detached garage is a garage that’s separate from the house. It’s exactly the same as any other garage only it’s not connected to the house. It’s a completely freestanding structure with 4 exterior walls.

Although most people think of a garage as a big room where you park cars and store stuff, detached garages are often built for multiple uses. Since they’re detached from the home it’s a great opportunity to add features the home doesn’t have. Some of the most common additional features found in a detached garage are:

  • Home gyms.
  • Work shops.
  • Home office.
  • Hobby Rooms.
  • Lofts.
  • Game rooms.
  • Pool houses.
  • 2nd Floor apartments.

Detached Garage Connected To The House

Many detached garages are connected to the house by a walkway with a roof on top called a breezeway. Or a fully enclosed breezeway we call a bridge. It’s a nice feature to have if you want to walk from the garage to the house when it’s raining out.

The difference between these two designs are:

  • Breezeways are open to the elements. Generally they just have a few posts holding them up.
  • A bridge is fully enclosed. Usually including some windows and perhaps an exterior door. bridges can even be heated and cooled.

Even though the detached garage may be linked to the house by a breezeway or bridge it’s still considered a detached garage. That’s because the home and garage are each standalone structures linked to each other by another element. They’re not actually touching and don’t share any common walls.

best detached garage ideas custom NJ home with a detached garage - Gambrick

Cute 2 car detached garage in the backyard. Because the garage is detached the home can have a wraparound porch. Having a detached garage creates opportunities for home designs that you wouldn’t otherwise be able to build. Those designs can then increase home values even more.

How A Detached Garage Adds Home Value

Before you start start spending money it’s important to first do your research and understand how a detached garage adds home value. There are a lot of things you can do to increase a home’s resale price and building a detached garage is definitely one of them. But is it the right one. There are quite a few factors you need to consider before you start spending money on designs or actual work. So how does a detached garage add value and are they right for every home.

Besides the benefit of keeping your stuff safe, a detached garages adds value to your home because of the additional square footage.

A detached garage is a versatile space. You can use it for parking, additional storage, a gym, home office, workshop, hobby room, or converted it to living space. The options are nearly endless.

It’s also important to note that depending on your location, many potential buyers may disregard a home from their search if it doesn’t have a garage. In some real estate markets a garage of any kind is a must.

Do Local Real Estate Pricing Research

First you need to understand that everything having to do with real estate prices is local. Not just in terms of states, counties and town but down to the actual neighborhood and street address. This type of research is called comps. You can do it yourself by looking up home values around your area.

You’ll notice that houses with a garage will sell for a premium vs. similar houses without one. But how much of a premium will vary based on your location, value of the home, size, style and design of the home and detached garage.

A Detached Garage Allows For Additional Home Designs

As you’ll see in the picture above, a detached garage allows the home to have a wraparound porch. You can’t have a design like this when you’ve got a garage attached to the house because there’s no way to wrap a porch around the garage.

By detaching the garage you open up all sorts of creating opportunities and those designs can then increase home values even further.

By not having a common wall, the one that connects the garage to the house, you have another exterior wall to design on both the detached garage and house. This allows for more things like windows and doors, a deck, patio or porch.

All of these features add home value.

Detached Garage Can Add Storage And Living Space

One of the most common ways to determined the value of a home is by multiplying the average price per square foot homes sell for in the immediate area by the square footage of your living space. Then you can adjust for added amenities like a detached garage, pool, fence, finished basement, central air, etc.

Factors like the age and condition of the property, expected amenities in the neighborhood, and the average value of similar homes recently sold in the area will affect whether your property’s price per square foot is above or below market average.

Adding a detached garage adds square footage to the property and that additional space can have add significant value if conditions are right. Do your research. Below are a few of the guidelines we typically use.

  • When a home doesn’t have a garage and all the other homes in the area do then adding a garage can be a good idea.
  • If you buy a house without a garage way below market value, compared the price to homes in the area that have one. If the spread is less than what building a detached garage costs then it’s a good idea.
  • Consult a realtor. They’ll know the local real estate market better than anyone.
  • Don’t overdo it. If your home is 1200 sq. ft. you probably don’t need a 4 car garage.
  • Tailor your garage design to the price point, style, level of finish and size of the home.
  • If your at the high point of the market already then adding a detached garage won’t do as much.
  • Try not to be the biggest and best house on the block at resale.

Increased Appeal To Potential Buyers.

Homes with more amenities are more appealing to potential buyers. And because more people will be interested in the home the price will go up. That’s basic supply and demand.

When you add a detached garage to the property your increasing the home’s storage space quite a bit. And who ever complains about having too much storage. Some buyers use their garage to park cars and some to store their stuff. Some detached garages include amenities like a gym, office, workshop, loft or even an apartment.

Just as with the home, the more features the garage has the more buyers it can potentially appeal to. Just don’t overdo it.

Transforming The Existing Attached Garage

Many homeowners remodel their attached garage into living space. It’s common to turn a garage into a bedroom, living room, kitchen, gym, home office or mother daughter sweet. It’s a lot cheaper and easier to add these rooms to the garage since it’s a remodel and not an addition. But then you lose the garage. If you want to regain that lost storage space then adding a detached garage is the answer.

You get all the additional rooms you need within the old garage area and don’t have to spend a fortune to do it. The detached garage can provide all the storage space you lost by remodeling. And since detached garages are typically less to build than actual living space additions you end up with everything you want for less money.

The addition of a detached garage can benefit you lots of ways including your finances. And best of all it can increase the resale value of your home.

A Detached Garage Apartment Adds Home Value

Building a detached garage with a 2nd floor apartment changes things quite a bit. Living space is priced differently than features that are considered an amenity. While a home may sell for $200 per sq. ft., garage space may only be valued at $100. But that apartment will be valued at $200 because it’s more living space. The garage area is still priced cheaper but that apartment will bring top dollar at resale.

Buyers often overvalue an apartment because of the potential income it could bring as a rental. If the apartment’s legal and can be rented you could cut your expenses quite a bit.

Another reason buyers like an apartment is flexibility. Use it as a guest house. Move in your parents, a friend or family member. Whether you use the apartment or not it’s still nice to have the option and that extra living space increases home value.

Detached Garage Home Appraisals

Whether you’re refinancing a mortgage or selling your house, you’ll want as high an appraisal value as possible. A great way to accomplish this is to build a detached garage. Assuming the property and real estate market are right for one of course.

Buyers view a garage as a great addition to the home. That’s why just about every new home built these days includes one. Especially as you rise in property values. When your above the bottom levels of the market a garage of any kind is standard. And in some markets having one is essential.

If the home and local real estate market are right then a detached garage can immediately boost the value of your home with an increased appraisal.

How Detached Garage Appraisals Work

When an appraiser figures out the value of your home, they look at several factors:

  • What prices similar nearby homes have sold for recently will give them an average price per sq. ft.
  • Then they look at what features those homes had and how they effect the sales price. For example they may determine that a detached garage is worth $75 per sq. ft. based on the comps.
  • They’ll consider whether your home sits in a desirable neighborhood.
  • They analyze your home’s style, condition, design and size.
  • Any improvements you’ve made to your home will be factored in.

A detached garage can make your home more attractive to a greater number of buyers. Appraisers will take this into account and factor your garage into your home’s current market value.

For the vast majority of homes, adding a detached garage will add more value to the home that what the garage costs to build. However, this has to be figured out house by house. It’s not a one size fits all answer to increasing home value and making money.

detached garage ideas grey siding with red brick

With a lot this narrow and a home this large, an attached garage would be tough to squeeze in. A detached garage is the best option. This nice 2 car design with dormers matches the style of the home and surely increases property value.

How Much Value Does A Detached Garage Add To Property Value?

This is a hard question to answer because it’s so situational. If you add a detached garage to a home valued at $350 per sq. ft. then it’ll add a different value than a home priced at $125. However that expensive home will need an equally expensive garage. Since you should tailor the garage’s design, size, style and level of finish to the home and real estate market prices tend to balance out.

Detached garage’s typically value at around 1/4 to 1/2 of the home’s price per square foot.

For example, if you have a house valued at $200 per sq. ft. you can expect to add an additional $50 to $100 per sq. ft. of garage space. This depends greatly on the amenities included in the garage.

Another huge factor to consider is whether or not the home has a garage already. If there’s an existing garage then adding a detached one won’t add much value to the home. Buyers will generally see it as overkill. As we’ve stated throughout the page tailor your design to the home. If you have a small house then a cheap single car garage is more than enough however if you have a mansion then you may need an elaborate 4 car design.

Detached Garage ROI. Are They Worth It?

To figure out whether or not building a detached garage is a good investment you’ll need to do some math. Adding a garage will definitely add home value, but is it worth it? That’s really what matters when your improving real estate. It’s easy to say a detached garage will add $50,000 to the value of your home but if it costs $75,000 to build is that a good investment?

If your using the garage for 10 years before you sell then maybe it is. But if your doing a house flip then it’s probably not.

You need to spend less than $50,000 to get even a little ROI. We’d recommend spending $25,000. As a rule of thumb we like to get as much value out of improvements as what we put in.

So as we’ve said many times throughout this article, do your research and tailor the detached garage design to the property. That’s the best way to increase home value and maximize your ROI.

Summary: Does A Detached Garage Increase Home Value? And Are They Worth It?

Owning a detached garage has quite a few benefits when compared to an attached one or no garage at all. And they do increase property value. But the amount of value added depends on several key factors. Make sure the garage fits the value of your home. Get the style and design just right so it becomes an asset. And don’t overdo it. If you’ve got a 1200 sq. ft. home then you probably don’t need a 4 car garage. If you design a detached garage that’s right for the property then your sure to add a substantial amount to your home value.

We hope the information and pictures shown above will help you with your next project.

If you have any questions or comments e-mail us any time.

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